Northern Rock have declared their intention to repay all of the money it owes the Bank of England within three years. In a meeting with the Treasury Select Committee, Northern Rock’s executive chairman Ron Sandler outlined how the bank hopes to repay a quarter of the debt by the end of 2008, another 50 per cent in 2009 and the rest in 2010, with the intention of returning to private ownership by 2011.
The bank commented that the repayments would be made even if there was a slide in the housing market, with a 10 per cent fall in house prices resulting in just a six month delay in repayments. Since the bank’s heavy exposure to the subprime crisis and subsequent credit crunch, Northern Rock has fallen further and further into financial difficulties resulting in the bank being nationalised.
The bank did, however, declare it is to continue its sponsorship of both Newcastle United Football Club and the Newcastle Falcons rugby union team, as well as its annual payments of £15 million to the Northern Rock Foundation which supports causes in the North East.
Nationalised Bank to Repay Debts within Three Years
Nationalised Bank to Repay Debts within Three Years
Thu, 22 May 2008
Recommended links
Internet Banking GuideBusiness Banking Guide
High Interest Savings Accounts
Top Pension Providers
Bad Credit Loan Lenders
Citigroup to Make Cuts to Banking Portfolio
Research Predicts Job Losses in US Banking Sector
| Banking news |
|---|
| HBOS Boosted by Rumours of Asset Sale - Fri, 04 Jul 2008 |
| Royal Bank of Scotland Issues Bond in Bid to Raise Capital - Wed, 02 Jul 2008 |
| Bank Reject Cash Injection Bid - Fri, 27 Jun 2008 |
| More News |
